Based on the Revenue Act of 1918 (enacted to fund World War I), an individual earning \(\$1,500\) in 1918 would have faced a tax liability depending on their marital status, but generally, the tax was very low or zero for that income level. [1, 2, 3]
- Single Person: The personal exemption for a single person in 1918 was \(\$1,000\). A single person earning \(\$1,500\) would pay a 6% normal tax (known as the "normal tax" rate in the 1918 act) on the amount above the exemption, which is on \(\$500\).
- Married Person: The personal exemption for a married couple was \(\$2,000\). Therefore, a married couple earning \(\$1,500\) combined would pay $0 in federal income tax, as their income was below the threshold.
